MELINDA DESLATTEAssociated Press
BATON ROUGE, La. (AP) - A $350 million borrowing plan to repair and upgrade rural roads across Louisiana moved forward Thursday with the first layer of approval from the State Bond Commission.
The money panel agreed without objection to proceed with planning for the bond sale, which will generate upfront cash for the road and bridge work. Approval of the final sale structure is set for next month's meeting, including a decision on whether to sell all the bonds at once.
"We can deliver the projects. We're anxious to get started," said Michael Bridges, undersecretary of the Department of Transportation and Development.
The dollars will pay for construction on roads not eligible for federal matching dollars in the highway program, under a bill passed by lawmakers earlier this year and supported by Gov. Bobby Jindal.
Every parish but Orleans Parish is eligible for the highway repair money.
If the Bond Commission signs off on the final details of the borrowing plan, the first round of projects will be spread across 37 parishes, according to a list provided by the Jindal administration. The additional projects haven't been outlined.
The debt will be paid over up to 22 years with money from registration, license fees, and taxes on commercial trucks and trailers, money earmarked into the State Highway Improvement Fund.
Interest rates could be up to 6 percent under the plan outlined Thursday.
The transportation department initially proposed holding three bond sales over three years, but instead is now seeking to sell all the bonds at once to investors to take advantage of low interest rates in the market.
Treasurer John Kennedy, chairman of the Bond Commission, said he supports borrowing all the money at once, though the full commission won't make that decision until it decides final approval for the sale next month.
"I'm afraid rates are going to go up, and if they go up, we have fewer projects," because it would cost more to do the borrowing, Kennedy said.
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State Treasurer John Kennedy (file photo)
